---

German corporate bankruptcies are rarely investigated in economic literature. One main reason is the lack of available
data. Furthermore, data quality is quite often poor. Thus, despite the high economic relevance, it is very difficult to
explore the division of value in corporate bankruptcies or efficiency effects of insolvency law.
This study provides a deeper insight into the economics of corporate reorganizations. Theoretical models that were
mainly developed for the US legislation are discussed against the background of German bankruptcy law. By analyzing
a unique data set of formal reorganization procedures in Germany between 1999 and 2012, the study identifies factors
that influence the extent of recovery rates.

---